CCRIF to make additional payouts to countries affected by Hurricane Matthew
Posted in: Press Releases | 14 October 2016 | 580
GEORGE TOWN, Cayman Islands, Oct. 13, CMC – CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) is now preparing to make additional payouts totaling almost US$8 million to CCRIF member countries that were affected by Hurricane Matthew.
The scheduled payouts have been triggered by the Excess Rainfall policies of Haiti, Barbados, St Lucia and St. Vincent & the Grenadines .
Last week CCRIF announced that the Government of Haiti is due a payout of approximately US$20.4 million on its Tropical Cyclone (TC) policy as a result of the storm.
The payouts to Haiti from CCRIF will now total US$23.4 million.
Matthew also triggered Barbados’ TC policy, resulting in a payout of just under US$1 million under that policy for a total payment to Barbados of US$1.7 million as a result of Matthew.
The payouts for all countries due to Hurricane Matthew, which will be made by October 19th.
Since CCRIF’s inception in 2007, the facility will have made a total of 21 payouts to 10 member governments totalling almost US$68 million, all within 14 days of the event.
CCRIF said it is able to make quick payouts because it offers parametric insurance products.
CCRIF’s TC policies make payments based on hurricane wind speed and storm surge levels and the amount of loss calculated in a pre-agreed model caused by the hurricane.
They do not include losses due to rainfall.
To fill this gap, CCRIF’s Excess Rainfall (XSR) product was developed in 2013.
Excess Rainfall policies make payments based on the volume of rainfall from a hurricane or other rain event.
A country’s TC or XSR policy is automatically triggered when the modelled losses surpass the policy’s “attachment point” or deductible, which was selected by the government.
Most CCRIF members have purchased both Tropical Cyclone and Excess Rainfall policies to provide coverage against these perils, which sometimes occur during one hazard event such as Hurricane Matthew.
Several members also have earthquake coverage.
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